New Delhi
Boeing's scrutiny is set to widen with the entry of Sanctions. The planemaker is sanctioned by the National Safety Board over breaking an agreement by disclosing details of an investigation into the 737 Max 9 mid-air incident that happened in January.
The agency cited violations of investigative information that were not cleared to release and speculating about the cause of the incident.
This adds to the growing list of troubles Boeing has encountered this year. The fallout which began in 2018, amplified in January 2024 after the mid-air incident involving an Alaska Airlines 737 plane.
This turbulence in the air led to a lot of regulatory scrutiny and a subsequent leadership shakeup. Boeing is already facing legal heat with the Justice Department over potential violations of a 2021 settlement related to the two deadly crashes in 2018 and 2019.
As a result of these sanctions, Boeing will not be able access information related to the investigation. Boeing is also set to appear at a board hearing on August 6 and 7 in Washington. The board will now coordinate with the Justice Department by providing details around these sanctions.
Boeing is already facing criminal prosecution threat, and the latest sanctions are adding fuel to the fire. If Boeing is convicted of criminal fraud, then it would lose all government & military contracts. This can further dent the company's image and revenues already falling amid ongoing safety challenges.